The market rally in the altcoin sector, also known as altcoin season, could be delayed until 2025 depending on key price levels of the world’s two largest cryptocurrencies. For a bullish rally in the altcoin sector to begin, both Bitcoin (BTC) and Ethereum (ETH) must first regain key psychological levels.
Bitcoin and Ethereum prices are currently recovering from last week’s $510 billion sell-off in the cryptocurrency market, which saw both cryptocurrencies correct to their February lows. To recap, Bitcoin fell below a key post-halving growth trajectory when it fell below $63,000, but the recovery of the trendline through the end of 2024 put Bitcoin back on track towards the $100,000 mark, based on previous Bitcoin halving cycles. The post-halving growth trajectory is generally in line with forecasts, and we look forward to Bitcoin breaking through the $100,000 mark during this cycle.
However, Bitcoin is currently struggling to rise above the psychological $60,000 mark as inflows from Bitcoin-based spot exchange-traded funds (ETFs) continue to stagnate. According to Farside Investors, US spot Bitcoin ETFs accumulated cumulative BTC volume of $27.8 million on August 12, with cumulative inflows of over $89 million as of August 9. US Bitcoin exchange-traded funds (ETFs) could soon accumulate cumulative There are more bitcoins in reserves than the anonymous creator of the cryptocurrency, Satoshi Nakamoto. Bloomberg ETF analyst Eric Balchunas published a chart on August 13 showing that the ETFs now hold a total of 909,700 BTC, worth about $55.1 billion at the current price of about $60,500. That is, the funds are approaching Nakamoto’s estimated reserve of 1.1 million BTC, which the mysterious creator mined in the early days of the Bitcoin network and has not touched since his disappearance more than 13 years ago.
On average, Bitcoin ETFs add about 37,510 BTC to their holdings each month. At this rate, they could surpass Nakamoto’s holdings in January 2025 – a year after their first launch. The ETF may have already dwarfed Nakamoto’s total Bitcoin holdings, as some estimates put the Bitcoin creator’s assets at just 600,000 BTC spread across 20,000 wallets. No one can say the exact number of Nakamoto’s Bitcoin holdings, since the Bitcoin creator used a new wallet to receive a reward of 50 BTC for each block mined in the early days of Bitcoin. Nakamoto was then the largest miner, and the process was much less resource-intensive than today.
